Losses reignite credit concerns at Ambac, MBIA

05/14/2008 | Bloomberg11

Continuing losses again threaten the AAA credit ratings at MBIA Inc. and Ambac Financial Group Inc., Moody's Investors Service said. The two largest bond insurers posted higher-than-expected losses related to home-equity loans and CDOs in the first quarter. Moody's stuck with its AAA rating on the two firms in March after they boosted capital by a total of $4.1 billion. "This could be a signal that (Moody's is) going to put them back under review," CreditSights Inc. analyst Robert Haines said. "If they're put under review, they'll be back for capital."

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